Allied gold progressing well at Simberi

09 October 2007 | 05:18 Code : 15577 Geoscience events
Allied Gold has providing an update on its Simberi Gold Project, including an....

  Allied Gold has providing an update on its Simberi Gold Project, including an announcement that exploration drilling has recommenced, an open pit mining contract has been awarded and commissioning is scheduled to commence in October with first gold pour due in November 2007.Allied Gold has reported the arrival on Simberi Island of two of the four drilling rigs purchased in the June quarter of 2007. Exploration drilling has subsequently resumed with the commissioning of the DFM400 diamond-only rig at the Monun Valley prospect, where previously reported channel sampling results indicate a potential 300m southeasterly strike extension to the Sorowar Deposit.The UDR650 drilling rig recently arrived from Ghana is presently being assembled and the two new South African Rockdrill 3000 drilling rigs are currently being mobilized to site. All personnel required to operate this equipment have been sourced and drill pads have been prepared for intensive exploration drilling.Additional 5m composite channel sample results have been received and these continue to reveal significant new intercepts along bulldozed tracks: 45m at 3.42g/t gold plus 55m at 1.66g/t gold, located 250m south of RopeCon Pylon 2, as well as 120m at 0.95g/t gold in Monun Valley.The former two intercepts are only around 40m apart and their weighted average is 2.45 g/t gold. They appear to comprise a single zone of mineralization that is open to the east and west. This mineralization is located approximately 1 km from the processing plant and is a new discovery with no prior drilling in the immediate vicinity.Allied has awarded the open pit mining contract to Mine Site Construction Services Pty Ltd, after a competitive bidding process. The contractor is expected to be fully mobilized to site by November. In the meantime Allied has commenced mining activities itself, utilizing company-owned heavy earthmoving equipment. As part of the mining contract, Mine Site Construction has agreed to purchase this equipment from Allied.The Simberi gold project remains on track for commissioning and first production in the December quarter. The latest schedule points to commissioning of the processing plant in October 2007 (next month) with the first gold pour in November 2007.Simberi is expected to produce an average of 84,000 ounces of gold per year for at least 8 years.

tags: QAZVIN

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